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[¶11,897] In the Matter of Bank of Chestnut, Chestnut, Illinois, Docket No.
01-139k (2-12-02).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $1,200.
In the Matter of
BANK OF CHESTNUT
CHESTNUT, ILLINOIS
(Insured State Nonmember Bank)
ORDER TO PAY CIVIL MONEY PENALTY
FDIC-01-139k
Bank of Chestnut, Chestnut, Illinois ("Bank") has been
advised of the right to receive a NOTICE OF ASSESSMENT OF CIVIL MONEY
PENALTY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, AND NOTICE OF HEARING
("NOTICE") issued by the Federal Deposit Insurance Corporation
("FDIC") detailing the violations for which a civil money penalty
may be assessed against the Bank pursuant to the Flood Disaster
Protection Act ("Flood Act"), as amended, 42 U.S.C. §4012a,
section 8(i)(2) of the Federal Deposit Insurance Act ("FDI Act")
12 U.S.C. §1818(i)(2), and Part 339 of the FDIC Rules and
Regulations, 12 C.F.R. Part 339, and has been further advised of the
right to a hearing on the alleged charges under the Flood Act, 42
U.S.C. §4012a(f), section 8(i) of the FDI Act, 12 U.S.C.
§1818(i), and the FDIC Rules of Practice and Procedure, 12 C.F.R.
Part 308.
Having waived those rights, the Bank entered
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into a STIPULATION AND
CONSENT TO ORDER TO PAY CIVIL MONEY PENALTY ("AGREEMENT") with a
representative of the Legal Division of the FDIC, whereby solely for
the purpose of this proceeding and without admitting or denying any
violations, the Bank consented and agreed to pay a civil money penalty
in the amount of $1,200.00 related to six loans identified at the
August 14, 2000 Compliance Examination where the Bank failed to both
provide notice to borrowers on loans secured by buildings or mobile
homes located or to be located in a designated special flood hazard
area as required by section 339.9 of the FDIC Rules and Regulations, 12
C.F.R. §339.9, and failed to obtain flood insurance on loans secured
by property located in a flood hazard area in which flood insurance has
been made available under the National Flood Insurance Act of 1968 as
required by section 339.3 of the FDIC Rules and Regulations, 12 C.F.R.
§339.3.
The FDIC considered the matter and determined it had reason to believe
that the Bank has engaged or participated in violations of law or
regulations for which a civil money penalty of $1,200.00 is appropriate
to be assessed against the Bank, pursuant to the Flood Act, 42 U.S.C.
§4012a, section 8(i)(2) of the FDI Act, 12 U.S.C. §1818(i)(2),
and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339.
ORDER TO PAY
IT IS HEREBY ORDERED that Bank of Chestnut, Chestnut,
Illinois be, and hereby is, assessed a civil money penalty of
$1,200.00, pursuant to the Flood Act, 42 U.S.C. §4012a, section
8(i)(2) of the FDI Act, 12 U.S.C. §1818(i)(2), and Part 339 of the
FDIC Rules and Regulations, 12 C.F.R. Part 339, the receipt of which is
acknowledged.
This Order to Pay shall be effective upon issuance.
Pursuant to delegated authority.
Dated at Washington, D.C., this 12th day of February, 2002.
